Question 1 of 30
A software company sells a subscription service that includes access to its software and ongoing updates for a period of one year. The total contract value is $12,000, which is paid upfront. According to the revenue recognition principles under ASC 606, how should the company recognize revenue over the subscription period?
Recognize $1,000 of revenue each month over the 12-month period.
Recognize the entire $12,000 as revenue at the time of sale.
Recognize $6,000 at the time of sale and the remaining $6,000 after six months.
Recognize $4,000 at the time of sale and $8,000 at the end of the subscription period.

Preparing for SalesForce Certified Revenue Cloud Consultant Accredited Professional Certified Revenue Cloud Consultant Accredited Professional? Now land the interview.

73% of qualified candidates get rejected because of weak resumes. Build an ATS-optimized, recruiter-ready resume in under 5 minutes - free to start.

Build My Resume Free